Instagram backtracks on privacy policy update

Instagram is backing off updates to its terms of use after a change
that suggested the photo-sharing service would use images in ads.

In
a blog post published on Thursday, Instagram co-founder Kevin Systrom
says they will revert to original advertising terms in effect since the
service's launch.

The October 2010 terms say the service "is
supported by advertising revenue and may display advertisements and
promotions, and you hereby agree that Instagram may place such
advertising and promotions on the Service or on, about, or in
conjunction with your Content."

"I want to be really clear:
Instagram has no intention of selling your photos, and we never did,"
says Systrom. "We don't own your photos - you do."

The updated terms will take effect on January 19.

Instagram's
original update to its Terms of Use included language that hinted user
photos could end up in paid advertisements, without permission or pay.
"To help us deliver interesting paid or sponsored content or promotions,
you agree that a business or other entity may pay us to display your
username, likeness, photos (along with any associated metadata), and/or
actions you take, in connection with paid or sponsored content or
promotions, without any compensation to you," read the initial update.

The
planned change stirred anger among Instagram users, many of them
threatening to quit. Notable photographers and users such as National
Geographic suspended their accounts until the terms were resolved.

The
photo sharing service currently hosts 100 million users. In April,
Facebook scooped up Instagram for $1 billion, and have sought ways to
cash in on their investment ever since.

"Instagram was focused on
building its user base, not on monetizing that base," says Radar
Research analyst Marissa Gluck. "But now that it's owned by Facebook,
which is under enormous shareholder pressure, it has to build a revenue
model."

Systrom says the company is going to revisit its plans for
bringing in revenue. "We are going to take the time to complete our
plans, and then come back to our users and explain how we would like for
our advertising business to work."